Germany is a Major Direct Investor in Spain
According to figures provided by Deutsche Bundesbank, approximately 1,200 German companies have established subsidiaries or holdings in Spain. The majority of these companies also own their production facilities in Spain.
German Tourism in Spain
It is estimated that in 2015, Spain was visited by 10.3 million Germans. This made Germans the third largest group of tourists, after the British and the French.
German Exports to Spain
German exports to Spain totaled $45 billion.
Product | Total Value |
Vehicles | $12 billion |
Machinery | $7.5 billion |
Electronic Equipment | $3.8 billion |
Plastics | $2.3 billion |
Pharmaceuticals | $1.9 billion |
Medical, Technical Equipment | $1.9 billion |
Organic Chemicals | $1.4 billion |
Iron and Steel | $1.1 billion |
Other Chemical Goods | $1.1 billion |
Iron and Steel Products | $716.7 million |
Spanish export Germany
Germany exports to Spain totaled $43 billion or 3.2%.
Product | Total Value |
Vehicles | $9.3 billion |
Machinery | $7.8 billion |
Electronic Equipment | $4.3 billion |
Plastics | $2.2 billion |
Pharmaceuticals | $1.9 billion |
Medical, Technical Equipment | $1.9 billion |
Organic Chemicals | $1.1 billion |
Iron and Steel | $916.4 million |
Aircraft, spacecraft | $903.4 million |
Other Chemical Goods | $798.7 million |
Spain and Germany Double Taxation Agreement
On 03/02/2011 the 2011 Tax Convention was signed.
Its provisions have been in effect since 01/01/2013.
The agreement provides lower tax rates for dividends as follows:
- 5% of the gross amount of the dividends if the owner is a company
- 15% of the gross amount in all other cases
Royalties including payment for using, or the right to use, industrial, commercial and scientific equipment can only be taxed in the recipient's country of residence.
According to the new Tax Convention, the gains that derive from the disposal of shares can be taxed in the transferor's country of residence, even though some particular exceptions are provided.
Finally, the Tax Convention provides, as far as the limitation of benefits are concerned, that both Spain and Germany are entitled to apply their domestic anti-abuse provisions and their domestic controlled foreign company rules.
Tax conventions benefits are not applicable to non-beneficial owners and competent authorities are entitled to agree on a procedure to avoid double taxation.
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